The US Dollar is attempting to build higher against the Japanese Yen after last week dramatic spiked downward. Near-term support is at 101.82, the 38.2% Fibonacci expansion. A break below that on a daily closing basis exposes the 50% level at 101.43. Alternatively, a push above the 23.6% Fib at 102.30 opens the door for a test of the 14.6% expansion at 102.60.

Our long-term outlook favors USDJPY upside but the recent drop in the S&P 500 warns that risk aversion may fuel liquidation of Yen-funded carry trades, sending the Japanese unit higher. With that in mind, we remain flat for now and look for a pullback as an opportunity to get long at a more attractive level.